December 06, 2018 (MLN): JCR-VIS Credit Rating Company Limited (JCR-VIS) has maintained entity ratings of ‘AA-/A-1’ (Double A Minus/A-One) to Novatex Limited (Novatex). Outlook on the assigned ratings has been revised from ‘Stable’ to ‘Positive’.
Long Term Rating of AA- reflects high credit quality, strong protection factors, and moderate risk but may vary slightly because of economic conditions, whereas Short Term Rating of A-1 indicates high certainty of timely payment, excellent liquidity factors supported by good fundamental protection factors and minor risk factors.
Assigned ratings incorporate the company’s dominant market position in all three business segments namely PET Resin, PET Preforms and BOPET Films, along with low business risk, healthy financial risk profile and adequate corporate governance framework.
Moreover, Novatex (through a wholly owned subsidiary Nova Powergen Limited) is also in the process of diversification in the power segment through investment in Thalnova Power Thar (Private) Limited (TNPTL).
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